June1, 2017

On January 12, 2017, the Federal Election Commission (FEC) declined to “launch [a] rulemaking to ensure that U.S. political spending is free from foreign influence”; Recently, during Congressional hearings related to foreign interference in the 2016 election, current and former intelligence officials and experts repeatedly stated that it is very likely that a foreign adversary will attempt to influence a future election

In a letter to FEC Commissioners, Klobuchar and Senate Democrats expressed deep concern about loopholes in our campaign finance disclosure laws that could be exploited by foreign nationals and foreign nations

WASHINGTON, DC – U.S. Senator Amy Klobuchar (D-MN), the Ranking Member of the Senate Committee on Rules and Administration, led a group of senators in urging the Federal Election Commission (FEC) to reconsider its decision to decline to “launch [a] rulemaking to ensure that U.S. political spending is free from foreign influence.” Recently, during Congressional hearings related to foreign interference in the 2016 election, current and former intelligence officials and experts repeatedly stated that it is very likely that a foreign adversary will attempt to influence a future election. In a letter to Commissioners Walther, Hunter, Goodman, Peterson, and Weintraub, Klobuchar and Senate Democrats expressed deep concern about loopholes in our campaign finance disclosure laws that could be exploited by foreign nationals and foreign nations.

“The FEC was created to facilitate campaign finance disclosure and enforce the limits and prohibitions on political spending. Our election laws expressly prohibit foreign nationals ‘from contributing, donating or spending funds in connection with any federal, state, or local election in the United States, either directly or indirectly.’ Taking action to ensure that U.S. elections are free of foreign money is a critical part of the FEC’s responsibility,” the senators wrote. “Unfortunately, there are current loopholes that could be exploited by foreign interests to influence our elections. Most of our campaign finance law was written prior to Citizens United and did not anticipate corporate political spending. Therefore, the current law and regulations do not provide adequate transparency to prevent foreign donations to campaigns.”

The senators continued, “The integrity of our democracy is at risk. Again, we ask you to reconsider this critical rulemaking to examine the loopholes in our campaign finance disclosure laws that could be exploited by foreign nationals and foreign nations.”

We are writing to urge the Federal Election Commission (FEC) to reconsider its decision not to examine the role of foreign political spending in U.S. elections.

On January 12, 2017, the FEC declined to "launch [a] rulemaking to ensure that U.S. political spending is free from foreign influence." Preventing foreign contributions in our elections is necessary to ensure fair and transparent elections, therefore we are asking you to reconsider your decision not to proceed with this rulemaking.

Recently, during Congressional hearings related to foreign interference in the 2016 election, current and former intelligence officials and experts repeatedly stated that it is very likely that a foreign adversary will attempt to influence a future election. Defending our democracy from future interference requires that we act now. We must thoroughly examine our election system for weaknesses that could be exploited.

The FEC was created to facilitate campaign finance disclosure and enforce the limits and prohibitions on political spending. Our election laws expressly prohibit foreign nationals "from contributing, donating or spending funds in connection with any federal, state, or local election in the United States, either directly or indirectly." Taking action to ensure that U.S. elections are free of foreign money is a critical part of the FEC's responsibility.

Unfortunately, there are current loopholes that could be exploited by foreign interests to influence our elections. Most of our campaign finance law was written prior to Citizens United and did not anticipate corporate political spending. Therefore, the current law and regulations do not provide adequate transparency to prevent foreign donations to campaigns.

Commissioner Weintraub explained how our current campaign finance disclosure laws blind us to the real dangers of foreign contributions, and said that "[t]he proliferation of dark money groups in the wake of Citizens United has made it impossible to know the sources of all the funds flooding into our political system." If it is impossible to know the sources of the funds being spent to influence our elections, how can we be confident that foreign money is being kept out?

On June 23, 2016, the FEC hosted a forum, Corporate Political Spending and Foreign Influence, which featured experts on campaign finance law, corporate law and transparency.

There was consensus among these experts that: (1) the Supreme Court's Citizens United decision created the potential for corporate political spending unanticipated by the Federal Election Campaign Act; (2) existing law related to corporate structures could be used to mask the source of political spending; and (3) foreign individuals or governments could abuse these loopholes to spend money to influence elections without detection.

As Melissa Yeager with the Sunlight Foundation stated:

"We're seeing more and more dark money coming from 50l(c)(4) nonprofit social welfare groups and limited liability companies... set up for the sole purpose of influencing campaigns and elections ... LLCs are internationally used as a vehicle for people to move money in secret. And there are many examples of LLCs already in this cycle but we know of at least one example where the owner admitted he was using it to distance himself from a campaign."

The integrity of our democracy is at risk. Again, we ask you to reconsider this critical rulemaking to examine the loopholes in our campaign finance disclosure laws that could be exploited by foreign nationals and foreign nations.